SEBI eases the Access Norms for investment by FPIs

Feb 16, 2018 | by Avantis RegTech Legal Research Team

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The Securities and Exchange Board of India (SEBI) in consultation with stakeholders has decided to make following changes in extant regulatory provisions to ease the access norms for investment by Foreign Portfolio Investors (FPIs):-

(i)          Discontinuance of requirements for seeking prior approval from SEBI in case of change in local custodian/ Designated Depository Participant (DDP).

(ii)        Rationalization of procedure for submission of PCC/MCV Declarations and Undertakings (D&U) and Investor grouping requirement at the time of continuance of registration of FPIs.

(iii)      Placing reliance on due diligence carried out by erstwhile DDP at the time of change of Custodian/ Designated Depository Participant (DDP) of FPIs.

(iv)      Exemption to FPIs having Multiple Investment Managers (MIM) structure from seeking prior approval from SEBI in case of Free of Cost (FOC) transfer of assets.

(v)        Simplification of process for addition of share class.

(vi)      Permitting FPIs operating under the Multiple Investment Managers (MIM) structure to appoint multiple custodians.

(vii)    Permitting appropriately regulated Private Bank/ Merchant Bank to invest on their behalf and also on behalf of their clients.

(viii)  The facility of granting conditional registration shall also be extended to existing funds, proposing to convert as India dedicated funds. However, existing India dedicated funds will be given time of 90 days to achieve Broad based status.

[Circular No.: CIR/IMD/FPIC/ 26 /2018]

URL: https://www.sebi.gov.in/legal/circulars/feb-2018/easing-of-access-norms-for-investment-by-fpis_37866.html


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